Parallel Systems

Parallel Systems

Automated battery-electric rail freight solutions

About Parallel Systems

Simplify's Rating
Why Parallel Systems is rated
B
Rated D+ on Competitive Edge
Rated A on Growth Potential
Rated A on Rating Differentiation

Industries

Automotive & Transportation

Consulting

Company Size

11-50

Company Stage

Series A

Total Funding

$51.7M

Headquarters

Los Angeles, California

Founded

2020

Overview

Parallel Systems focuses on transforming freight transportation by shifting cargo movement from trucks to rail. They develop automated, battery-electric freight rail vehicles designed to integrate seamlessly into existing railroad operations. This technology allows railroads to service routes under 1,000 miles, providing a more efficient and environmentally friendly alternative to traditional trucking, especially for shorter distances. Unlike competitors, Parallel Systems emphasizes sustainability and flexibility, targeting railroads that want to expand their services and businesses looking for greener freight options. The company's goal is to reduce carbon emissions in the freight industry while offering innovative solutions that enhance operational efficiency for railroads.

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Simplify's Take

What believers are saying

  • Increased demand for short-haul rail solutions due to truck driver shortages.
  • Development of microterminals reduces land use and operational costs for rail freight.
  • Zero-emission logistics align with growing demand for sustainable freight solutions.

What critics are saying

  • Competition from established rail companies like Genesee & Wyoming in zero-emission solutions.
  • Potential regulatory challenges from new rail safety bills in Congress.
  • Dependence on government grants, which may not be sustainable long-term.

What makes Parallel Systems unique

  • Parallel Systems offers autonomous, zero-emission rail vehicles for freight transportation.
  • The company targets short-distance rail corridors under 1,000 miles, unlike traditional rail.
  • Founded by former SpaceX engineers, Parallel Systems leverages advanced technology for rail freight.

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Funding

Total Funding

$51.7M

Above

Industry Average

Funded Over

2 Rounds

Series A funding typically happens when a startup has a product and some customers, and now needs funding to scale. This money is usually used to grow the team, expand marketing, and improve the product. Venture capital firms are frequently the main investors here.
Series A Funding Comparison
Above Average

Industry standards

$15M
$8.2M
Discord
$15M
Canva
$49.5M
Parallel Systems
$100M
GitHub

Growth & Insights and Company News

Headcount

6 month growth

-4%

1 year growth

-2%

2 year growth

10%
Compsmag
Feb 13th, 2024
FRA Announces Hearing for G&W's Zero-Emissions Tech Test: What Railroad Professionals Need to Know

Parallel Systems has developed battery-electric rail vehicles designed to move containers in a cleaner, safer, and more cost-effective way than traditional trucks.

Electric and Hybrid Rail
Sep 14th, 2023
Parallel Systems unveils second generation autonomous battery-electric rail vehicle

Parallel was awarded US$4,438,897 by the Department of Energy (DOE) as part of its Advanced Research Projects Agency-Energy (ARPA-E) initiative, which is helping to fund the development, production and testing of the second generation electric rail vehicles.

CleanTechnica
Sep 12th, 2023
Electric Vehicles & The End Of The Two-Mile Train

Railway safety was at the top of everyone’s minds last February, after a toxic train derailment in East Palestine, Ohio, sparked a health emergency. A new rail safety bill is winding its way through Congress, but that is a dim prospect as the media spotlight fades. Instead, local communities may have to wait until the era of autonomous electric vehicles begins to take shape and new safety-first technology plies the railways. Call Them Electric Vehicles, Not Trains. Derailments and toxic releases are the the first things that come to mind in terms of community rail safety, but even a non-derailed freight train can cause life-threatening problems. As train length increases, crossings are clogged for longer periods

Forbes
Sep 12th, 2023
A 'Parallel' Path To Autonomous-Electric Rail Freight Travel

Second generation Parallel Systems autonomous-electric rail vehicle. Vehicle is designed to carry . [+] cargo containers that might otherwise by transported by trucks or traditional freight trains. Parallel SystemsNo locomotive, no caboose, or even an engineer. The autonomous electric rail cars developed by Los Angeles-based Parallel Systems both power and drive themselves.Founded in 2020 by a group of former SpaceX engineers, Parallel Systems introduced the second generation of its autonomous electric rail vehicle Tuesday.The cars are designed to carry shipping containers along the nation's rail system in an effort to both provide cleaner freight transportation and help solve the ongoing commercial truck driver shortage, according to co-founder and CEO Matt Soule.In particular, the autonomous-electric rail vehicles could handle what's known as dreyage—transporting shipping containers from ports to inland destinations—routes that can range from a few miles to a few hundred miles. That's a role traditionally played by trucks.Matt Soule, co-founder and CEO Parallel Systems

Electric and Hybrid Rail
Aug 21st, 2023
Genesee & Wyoming to pilot zero-emission rail freight solution from Parallel Systems

Earlier this year, Parallel Systems, a company founded by former SpaceX engineers, announced that it had begun testing its new autonomous battery-electric rail vehicle and proprietary autonomous train control system, as it works toward developing a solution to move freight cleaner, faster, safer, and more cost effectively than traditional trains or trucks.

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